B2C2, the world’s largest crypto liquidity provider and institutional digital asset pioneer, has gone live with electronic options trading for the over-the-counter (OTC) crypto market.
“Providing our clients with the ability to trade OTC options electronically reflects significant growth in institutional demand for derivatives over the past 12 months,” said Johannes Woolard, Head of Options, B2C2.
“Clients are looking for a more comprehensive set of tools to access, hedge and trade crypto simply and easily. Institutions turn to us as a well-established and innovative crypto-native liquidity provider with the reliable and resilient trading infrastructure they require.”
B2C2 has offered ‘voice via chat’ OTC options trading since October 2021.
B2C2 is now offering electronic OTC options via its Single Dealer Platform.
Options Chain provides a powerful visual interface enabling ‘point & click’ electronic trading in OTC crypto options for the first time. This functionality transforms OTC options trading by giving traders a choice of how to execute off-exchange trades.
Additionally, B2C2’s Options Chain brings streaming prices to options traders, providing them with a comprehensive view of live OTC prices for all strikes in one place for the first time. Traders will no longer need to request prices individually – they can now see the whole surface at a glance – transforming execution.
The new options OTC functionality is fully integrated into B2C2’s crypto-native spot, CFD and loans trading platform. Options post-trade reporting is already live with a trade blotter and aggregated positions, along with automation around B2C2’s institutional-grade ISDA margin functionality. New features will be added incrementally over the next few months, including an options calculator with Request for Quotes (RFQ) functionality on complex derivatives structures. As with B2C2’s other OTC products, all functionalities will be available on the B2C2 portal as well as via API.
Following the market downturn, the crypto derivatives market has grown on-exchange to $3.12 trillion in July 2022, a 13% monthly increase, according to CryptoCompare, and makes up more than 60% of total crypto volumes. As in other asset classes, like FX, it’s expected that OTC trading volumes will grow to a multiple of ‘on-exchange’ trading.
The OTC market has a number of features, however, not available on-exchange.
These include: flexible contracts tailorable to a client’s specific needs and strategy; a bilateral counterparty relationship built on trust and with the ability to extend credit; technology, operations and risk management best practices designed for institutional needs and standards.
B2C2 has been at the forefront of global market developments since it was founded in 2015.
The firm executed a pioneering bilateral crypto non-deliverable forward (NDF), opening up access for banks last year. In 2022 it joined ISDA and was the first crypto trading firm to join FIA.
Sygnum Bank, the world’s first digital asset bank, has executed the first trade with the B2C2 Options Chain.
Dominic Lohberger, Head of Trading, Sygnum Bank, commented: “B2C2 is taking institutional crypto derivatives trading to the next level. As a regulated digital asset bank with institutional clients, Sygnum is proud to be executing the first OTC trade with the B2C2 Options Chain. Together we are setting the path for the future of electronic crypto trading.”
